Tokyo donors’ meeting
Wednesday, 15 Apr, 2009
IT is argued by some that the physical battle against militancy has been a drain on Pakistan’s resources. Seen in this light, the prime minister’s adviser on finance is stretching a point when he says that health and education suffered over the last few years because funds had to be diverted towards security needs. The fact of the matter is that healthcare and education have been routinely neglected by successive governments, irrespective of their ideology or the geopolitical needs of the hour.
The word from Islamabad is that Pakistan will be seeking $4bn at an international donors’ meeting in Tokyo on April 17. Japan alone, it is said, may commit to an outlay in the region of $1bn. On paper at least, these funds are to be spent on health, education and poverty alleviation — areas that are clearly interconnected — over the next two years. Access to healthcare and schooling are of course basic human rights that must be respected across the globe. On one level there is the unacceptable human misery associated with disease, illiteracy and poverty. There are tens of millions of people in this country who spend a lifetime in conditions that others from more privileged backgrounds would not bear for a day. On a wider level, no developing country can hope to prosper until it ensures that the majority of its citizenry and workforce is healthy and educated. In the context of Pakistan, there is another pressing reason why the social sectors cannot be neglected any longer. Poverty, hunger and illiteracy are preyed upon by the Taliban who draw most of their recruits from among the ranks of the marginalised and ideologically susceptible. An educated populace with prospects is less likely to be tempted by the call of extremist ideologies.
The final numbers are not known yet. Nor is it clear how the funds pledged in Tokyo will be utilised. Will the money go directly to the government or will it be channelled through intermediary organisations and private-sector implementing authorities? The latter option may not be acceptable to Islamabad. As such, to ensure transparency in execution — never the forte of Pakistani officialdom — we may profit from a combination of non-governmental and public partnerships in which each learns from each and helps keep an eye on the other. Any money received for healthcare and education must be wisely invested and with honesty of purpose. We can make or break our future. The latter should not be an option.
************************************************** ********
A transient peace?
Wednesday, 15 Apr, 2009
BALOCHISTAN is limping back to normality, but this is no guarantee of a lasting peace, for underdevelopment and the lack of provincial autonomy responsible for the Baloch people’s dissatisfaction have yet to be addressed by the centre. It is a measure of the influence wielded by the province’s nationalist leaders that their call for a strike evoked a violent response in every nook and cranny of the province. The wave of anger and lawlessness in the wake of last week’s kidnapping and murder of three Baloch leaders cannot be attributed to the crime alone. Matters had been drifting in that direction for a long time, and the triple murder merely served to ignite passions once more. The current phase of the unrest began in 2005, with fighting in the Sui area when the government moved in the army to secure gas installations that were being subjected to regular rocket attacks by private militias loyal to Nawab Akbar Bugti. The latter’s death in August 2006 may have caused a temporary setback to the insurgency, but dissatisfaction in the country’s largest province continued to simmer. However, those who thought that holding general elections and the assumption of power by democratic governments in Islamabad and Quetta, together with the PPP’s apology for past excesses perpetrated on the Baloch, would defuse the situation were disappointed. Attacks on vital installations continued, even if they were of a sporadic nature as the military scaled down its operations in the area.
It should be noted though that government apathy is not the only reason why Balochistan has suffered all these years. The province has also suffered as a result of the political rhetoric on the part of some Baloch sardars who have glossed over the genuine grievances of people, including their poverty in a land of immense natural wealth. For instance, at a recent press conference in Karachi, a Baloch political party demanded Balochistan’s “sovereign right” to self-determination. This is loose talk that does not advance the cause of the Baloch. The government and Baloch leaders have no choice but to find a democratic solution to Balochistan’s problems within the ambit of the constitution. Two parliamentary committees formed during the Musharraf era came up with useful suggestions but these were not carried forward. The absence of concrete proposals from Baloch nationalists for constitutional am-endments and enlarging the area of provincial autonomy is also noted with regret. Insurrection and agitation can, no doubt, focus the world’s attention on the grievances of the Baloch people, but in the long run the politics of violence is counterproductive and enables non-state elements, including external powers, to exploit the situation.
************************************************** ********
Rise in power tariffs
Wednesday, 15 Apr, 2009
THE government is unlikely to immediately notify the increase/decrease that the National Electric Power Regulatory Authority has recommended in the power tariffs of the country’s nine distribution companies. Nepra will take its time to transfer the burden to the consumers. But the power bills are set to rise substantially sooner rather than later. Pakistan has already made a commitment to the World Bank and the IMF to eliminate power subsidies before the current fiscal is out. The objective is to cut ‘non-essential’ spending in order to narrow the gap between the government’s resources and expenditure. In its monthly ‘determination’ of power rates, Nepra has proposed an increase ranging from just four paisas to a hefty Rs1.21 per unit in the tariffs of eight distribution companies of the Pakistan Electric Power Company. It has also recommended a decrease of four paisas per unit for the consumers of the privatised Karachi Electric Supply Company.
The decision is an attempt to cover the increasing costs of power-generation. In line with its past practice, Nepra has kept itself from penalising the distributors for their inefficiencies and huge distribution losses. The regulator has done its job and it is now for the government to either transfer the burden to the consumers or subsidise their bills. The increase in power bills will have a profound impact on the country’s slowing economy and severely hit the manufacturing sector, which is already suffering due to energy shortages and higher production costs. Exports could decline further if countermeasures are not taken to offset the increase in the cost of industrial production on this count by reducing the cost of credit and transportation charges. Domestic consumers would also be forced to reduce other essential expenditures to absorb the increase in their power bills as real incomes decrease with high inflation. That would be adding insult to injury as they are already paying a big price for the inefficiencies of the distribution companies. There is a strong possibility that a further rise in their electricity bills could see many unhappy consumers taking to the streets in protest. Those in power must be prepared for the political fallout of the higher tariffs.
************************************************** ********
OTHER VOICES -European Press Optimism is the best
Wednesday, 15 Apr, 2009
WITH the domestic environment still awash with the bout of ‘self-congratulatory’ aura that surrounded the swearing-in of a new president following the consensus won over his election, the onslaught of bad economic news … receded a bit into the background…. Eastertide generally uplifts the spirits ... local discussion is never short of the usual trivial ... controversies … in the wake of the election of the new president, a man who comes straight from the Labour camp but who was proposed for the post by a Nationalist prime minister….
... Immediately after Easter, the scene will be set for … the election for the European parliament.… Nationalists present[ing] themselves as the best possible guardians of Malta’s European Union membership and Labour … feel they can win better benefits through their representation.
Times of Malta
... It is not surprising either that Labour keeps harping on the financial aspect of membership. No doubt, their trait of valuing practically everything in financial terms is directly inherited from their past socialist masters. Having so strongly opposed membership ... it is going to take Labour much more than a simple declaration of conversion to the membership idea to persuade the majority that they truly believe in Malta’s new place within the European Union.
The impact of the economic downturn on the economy will not probably figure much in the final lap of the individual campaigns the candidates are carrying out … but, on a national level, the country can hardly afford deflecting its attention from the need to grapple with the problems. Pessimistic talk ... can only make matters worse…. As one psychologist remarked in The Daily Telegraph the other day, “optimism is our best defence against the downturn ...”.
Of course, optimism will not work miracles by itself. It would have to be well fuelled by well-planned concrete action meant to stimulate the economy generally; directly helping firms that have been hit following a reduced demand for their goods, as the government is doing; and … eliminating obstacles to efficiency at various key points of service to private industry. — (April 14)